Amended and updated notes on section 154 of CGST Act, 2017. Detail discussion on provisions and rules related to power to take samples.
Chapter XXI (Sections 143–174) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to miscellaneous. Section 154 of CGST 2017 provides for power to take samples.
Recently, we have discussed in detail section 153 (Taking assistance from an expert) of CGST Act 2017. Today, we learn the provisions of section 154 of Central GST Act 2017.
Section 154 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. This notification was come into force from 22nd June, 2017 i.e. the commencement date of section 154 is 22-6-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | XXI |
| Chapter Name | Miscellaneous |
| Section No. | 154 |
| Section Name | Power to take samples |
| Updated 2025 Edition | GST Law Book PDF |
Section 154 of Central GST – Power to take samples1
Section 154 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017.
The Commissioner or an officer authorised by him may take samples of goods from the possession of any taxable person, where he considers it necessary, and provide a receipt for any samples so taken.
- Section 154 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. ↩︎
Notes on Section 154 of CGST Act
CGST Section 154: Power to Take Samples
Under Section 154 of the Central Goods and Services Tax (CGST) Act, 2017, the Commissioner or any officer authorized by him has the power to take samples of goods from the possession of any taxable person whenever deemed necessary.
Key Provisions of Section 154:
- Authority to Take Samples:
- The Commissioner or an authorized officer may collect samples of goods from a registered taxable person.
- Purpose of Taking Samples:
- Though the law does not explicitly define the reasons, samples may be taken for purposes such as:
- Examination or testing (e.g., to check compliance with GST classification).
- Verification of quality, quantity, or authenticity of goods.
- Investigation of tax evasion or fraud cases.
- Though the law does not explicitly define the reasons, samples may be taken for purposes such as:
- Receipt for Samples:
- A receipt must be provided to the taxable person for the samples taken.
- This ensures transparency and accountability.
- No Immediate Tax Implication:
- Merely taking a sample does not imply that GST is payable on it.
- However, if the samples are later found to be taxable supplies, GST liability may arise.
This provision empowers GST authorities to ensure compliance while maintaining transparency by requiring an official receipt.